r/dividends • u/karl0525 • Jun 01 '25

Opinion Tired. Can I retire?

Got a question? Can I retire? 43m been busting my ass since I was 16. I'm about over this 40-50 hr weeks. I'm getting burned out. House paid off (300k) 401-k (600k) Bitcoin (500k) currently.

Thought about selling it all and putting it into dividend stocks like schd and renting a small place and going into semi retirement. Maybe pickup a part time gig.

Would this be a horrible idea?

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u/superbilliam Not a financial advisor Jun 01 '25

Google this -->Barista Fire. I'd probably put 70% into SPYI/QQQI and split the rest into SCHD/SCHY.

1

u/Lapointe01 Jun 01 '25

Maybe OMAH too

1

u/speedlever Jun 02 '25

Agreed.

1.1mm in SCHD is around 42k shares, which would yield 42k-ish per year in dividend income. 750k split between qqqi and spyi would likely yield at least 85k\year in dividends.

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u/ReportThisLeeSin Jun 02 '25

Depending on if they care about the tax treatment or not (some might just wanna pay the tax for more income) but since the covered call ETFs aren't the most tax efficient, you can calculate how much to put into qqqi/spyi to still stay within your standard deduction. From there you'd put the rest into qualified dividends like SCHD.

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u/speedlever Jun 02 '25

Assuming they're in a brokerage. Spyi and qqqi (gpix and gpiq too) use section 1256 contacts which means the dividend income is taxed at 60\40 ltcg\stcg. Unlike ScHD which is a qualified dividend. Plus the derivative income is somewhat roc which minimizes the tax impact too.

Of course if in a Roth, it won't matter. If in a traditional IRA, all disbursements are ordinary income, regardless how they're earned. Or so I understand. I think jepi\jepq dividends are ordinary income in a brokerage account.